SRA - Strathfield Group

[champ2003]

This stock is so frustrating!!!
Despite the improving fundamentals its s/p is being decimated by a large seller.
I suspect it is the Kelly Group who were the original founders but removed from the board a few years ago. They have been selling down for around 6 months and with over 100,000,000 shares still held, they control the direction of the share price.
Has anyone got any more accurate information?
bruce1

It has dropped due to the retail profit cycle being lower at this time of year, the share price rose earlier due to the profit expectations due to the busy xmas period. I was actually very surprised after reading their 1/2 yearly report many times that thy aren't actually benefiting much from the franchising as yet and I expected the cost of sales to have dropped however they rose for some strange reason. I would have expected that the cost of sales should have dropped due to franchising and It appears that they have added the sales of the franchises into the total revenue figure which would give a false impression of how the company is going. They have now also initiated legal action against the ex Director which has been looking after maintaining good relationships with their contracts for purchasing and SRA are trying to get him to pay back the 9 odd million dollars that he apparently owes. The legal action will take up a substantial amount of time and money on SRA's behalf even though they claim that it will have little impact on the consolidated entities bottom like profit. I've sold due to all of these reasons.

 

[bruce1]

Thanks for those comments"Champ"
The amount showing in their accounts as owed by the ex director is listed as $4.83m.I believe this amount is secured by a tranche of shares owned by the ex director but I would not believe it would cover the debt based on the current share price.In total the shares held by the ex director are just over 100m and based on current share price they would only be worth around $4.6m and not all of them are secured by the loan.
I am interested as to where you were able to glean the information that SRA have taken legal action as it does not show anywhere that I can find in any of their announcements.Their share price lifted for the first time in a long time on friday albiet on a low volume .I will continue to hold as I believe the current board and management are doing a commendable job in attempting to shape the turnaround but they are still not out of the woods as yet

 

[champ2003]

Thanks for those comments"Champ"
The amount showing in their accounts as owed by the ex director is listed as $4.83m.I believe this amount is secured by a tranche of shares owned by the ex director but I would not believe it would cover the debt based on the current share price.In total the shares held by the ex director are just over 100m and based on current share price they would only be worth around $4.6m and not all of them are secured by the loan.
I am interested as to where you were able to glean the information that SRA have taken legal action as it does not show anywhere that I can find in any of their announcements.Their share price lifted for the first time in a long time on friday albiet on a low volume .I will continue to hold as I believe the current board and management are doing a commendable job in attempting to shape the turnaround but they are still not out of the woods as yet

Hi Bruce,

About the legal proceedings that i mentioned, have a look at the last page of the 1/2 yrly report. It states (Quote): Claims and possible claims , indeterminable in amount have arisen in the course of business against entities in the consolidated entity. The directors of the parent entity believe that any resultant liability will not materially affect the financial position of the consolidated entity. END QUOTE.

This is all about the Cavastoe Loan by the ex director and against the ex director which is also their current contracted employee ( you have to read between the lines and put it all together from previous mentioned info in previous reports).

Best regards

Champ

 

[rgdk]

SRA on the move...

This one has been very quiet of late after releasing its somewhat shrouded half yearly report earlier this year.

Yet after drifting back to a support level of around 0.04 it seems to have awoken, albeit with no information from the company itself. Currently at 0.056on reasonable volume.

Does anyone know anything specific or are the buyers just punting on SRA enjoying the general retail spending orgy that the big players have all been benefiting from?

 

[choksiankur]

SRA - Strathfield Electronics

Hi
Any one have idea why SRA is keep going down after declaring really good result?? It looks bit strength company declare really good result and management put good effort still sp gone down.
Please let me know if any one have idea.
thanks